The new space race: are private markets positioned for lift off?

To infinity and beyond...

In April, NASA’s Artemis II mission marked a pivotal step in humanity’s return to deep space, underscoring renewed momentum in lunar exploration after more than half a century. Beyond the headlines, the mission serves as a timely reminder that space adventure is no longer solely the domain of governments – it’s increasingly powered by commercial innovation and private capital.

While Artemis II marks a significant milestone, the investment case for space extends far beyond individual missions. Today’s space economy is built around enabling infrastructure and downstream applications – from communications and Earth observation to data, defence and autonomous systems – many of which are already generating commercial revenues and supporting economic activity back here on Earth.

Why does space exploration matter for investors?

The space technology sector is undergoing a rapid transformation, from speculative ventures to a more disciplined, revenue-driven market. Despite elevated interest rates and the capital-intensive nature of the industry, venture capital (VC) investment has remained resilient. Since 2019, over $50 billion (£38 billion) has been deployed into space-related opportunities, with deployment heavily concentrated in the US [1].

This shift is already visible in how capital is being deployed across the sector. VC investors are increasingly focusing on later-stage companies, while early-stage and seed activity is cooling. In 2024-25, funding has been flowing towards satellite communications and geospatial intelligence, and away from infrastructure-heavy categories such as commercial launch. Most exits are through acquisitions, reflecting a maturing market.

These characteristics help explain why much of the opportunity in space is being accessed through private markets. Long development cycles, high upfront capital requirements and rapid technological iteration often sit more naturally within private ownership structures. This allows companies the time and flexibility needed to scale before reaching public markets, if at all.

What’s the opportunity set?

Geopolitics are reshaping the sector, with the US strengthening ties to commercial players. China and Europe are accelerating sovereign capabilities. Meanwhile, NASA’s planned International Space Station decommissioning in 2030 is accelerating investment into low‑Earth orbit infrastructure.

How does this look in practice?

Part of our private markets multi-strategy programme provide investors with measured exposure to the space economy through VC allocation, alongside investments in adjacent technologies such as aerospace, autonomous systems and advanced manufacturing. Our approach seeks both diversification and comprehensive coverage of the space value chain.

As part of our portfolios, Aberdeen has exposure to the following companies through its portfolios.

SpaceX

SpaceX remains a dominant force in space technology, capturing over 90% of US rocket launches in 2025. Many of these launches deployed Starlink satellites, building the world’s largest commercial broadband network in orbit. SpaceX’s next-generation Starship aims to revolutionise launch economics with its reusable rocket design. At the same time, US government agencies are actively encouraging alternatives, boosting companies like Rocket Lab or Jeff Bezos-backed Blue Origin to diversify launch capabilities.

Astranis

Astranis develops and operates small, low‑cost geostationary satellites designed to provide dedicated satellite communications services to commercial and government customers in underserved regions.

Apex

Apex manufactures standardised, configurable satellite bus platforms. These enable faster and more cost‑efficient deployment of commercial and government satellite missions across multiple orbital regimes.

These are just a few companies that can potentially give access to the structural growth of the space economy across the broader value chain.

Final thoughts…

While the Artemis II mission captured headlines, the more enduring story is the continued commercialisation of space. That’s not as a single project or programme, but as a growing economic ecosystem – one that private markets are increasingly well positioned to access on behalf of investors.

[1] https://www.jll.com/en-us/guides/aerospace-technology-sees-liftoff-launched-by-venture-capital-funding

Baldric Todeschini, senior investment specialist, private market solutions at Aberdeen.